أسئلة وأجوبة
The landlord's agent is demanding key money. Is it legal?
Hi Raluca,
We are trying to secure a shop in Al Satwa area, and the landlord's agent (not sure if RERA registered) is demanding key money. The rent is 65k, and the key money being demanded is 45k.
If we sign the agreement with the key money included, can we then claim it back as an unlawful demand? We have tried to argue not to pay it, but the agent is saying all shops this landlord has are demanding it.
Interestingly, the agent suggested I could pay 5k to him and 40k as key money, so it is clearly not a charge being laid down by the landlord/building owner.
Thanks!
Dear Questioner,
Thank you for your query!
In UAE regulations, "key money" is not a practice governed by the law. Therefore, this is not a legal right of the agent and is not permissible under the law.
Agents are allowed a fee/commission upon the signing of a contract. However, this practice without a valid contract concluded is illegal.
You may report these individuals to the Land Department/Real Estate Regulatory Authority, as usually these are not the landlord's demands, and are the agents/brokers of the landlord acting on their own accord.
Please feel free to email me if you have any further queries.
Thank you!
